What Are The Benefits Of Information Technology?
In a broader sense, information is structured, processed and organised information used by an individual or group of people. It gives context to other data and allows individuals to make informed decisions. For instance, a single person’s sale in a restaurant is statistical data-this becomes relevant information when the organization is able to identify that the most successful or least successful dish is. The same statistical data could be translated into a complex financial model that an investor would understand and apply to finding more profitable investments.
In today’s information age, it has become increasingly important to manage information properly. Without information systems, processes cannot be effectively targeted or managed. They also become ineffective, wasteful and inefficient over time as information systems become outdated or corrupt. However, there are many reasons why information systems may be considered mandatory and essential in some industries. Below are some of the main reasons why information systems may be required.
Targeted Decision Making – one of the largest benefits of information systems is targeted decision making; specifically, making decisions based on correct and accurate information. Without such systems, companies and organisations are unable to successfully implement policies and projects. In addition, companies and organisations are not able to determine what steps to take to implement changes in the face of change. For instance, if the need arises to implement changes in workforce management, recruitment, product design or even company operations, it becomes difficult to determine what actions are more likely to yield positive results. Without information systems in place, companies and organisations are forced to make educated guesses at each stage of project implementation.
Shared Processes and Resources – another benefit of information systems is the sharing of information between multiple departments, groups and teams. This sharing of information facilitates collaboration between different parties and also provides for improved communication within an organisation. In addition, information systems provide for greater accountability of processes and activities by linking all parties to a common goal. With shared processes, information is available to multiple parties with instant access. Also, with information available in real-time, mistakes are quickly identified and resolved.
Improved Decision Making – businesses also reap the benefits of information systems when they are able to make better informed decisions about the conduct of their business. Through information systems, businesses are better able to understand their customers’ needs, motivations, preferences and other data that are necessary for making informed decisions. In addition, this information is shared and can be used to provide businesses with research and analysis data so they can create and deliver solutions to their clients. In turn, this improves customer satisfaction because satisfied customers are more likely to refer your business to others. Furthermore, because all decisions are made as per the requirements of the customers, your business gets better feedback.
Reduced Costs – because information systems are integrated with other business processes, they result in reduced costs of implementing them. In addition, information systems offer businesses increased flexibility, which results in greater returns on investment (ROI). These systems help businesses respond quickly to changing external conditions that may affect their markets. They also help companies to monitor their own performance and track and measure its effect on the market.